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One-Point Pension Increase Could Add Up to £23,000, Study Finds

Researchers warn many UK workers are not on track for a basic retirement income.

Overview

  • New Personio research indicates raising pension contributions by one percentage point can add roughly £13,000 to £23,000 over a working life.
  • Example costs cited include about £25 a month for someone earning £30,000 and around £42 a month for a £50,000 salary.
  • The study reports 39% of UK workers are projected to fall short of even a basic retirement standard.
  • Workplace auto-enrolment typically totals 8% of pay, with at least 3% from employers and at least 5% from employees.
  • Employer top-ups and tax relief significantly boost payments, with the Mirror noting a £40 employee contribution becoming £80, and advisers urging higher saving rates by midlife plus use of tools such as calculators, employer matching, and Lifetime ISAs.